Question About Mortgage Assumption
If I were to assume a mortgage on a property would this also give me the power to obtain a second mortgage for say cash out or rehab providing there is equity to do so?Or would I need the origional mortgagor involved?
Thanks in advance,
Benny
[addsig]
Assumable mortgages went bye-bye a long time ago. Are you talking about qualifying with the lending institution to take over the existing loan? If you are able to do this, you can qualify for your own loan. I'm not sure that I see any benefit to doing this.
To answer your qustion, if you assume the first mortgage, and meet the qualifications you can take out a second if there's enough equity in the property.
Technically you can get a 2nd mortgage if you assume the first and get title. However you will run into some problems, first would be title seasoning issues, 2nd lenders don't like to lend 2nd mortgage when 1st mortgage has a different name on it and 3rd when a second mortgage is taken out, most of the time the 1st will find out and see that title has changed and might envoke the DOS clause. Assuming you're speaking of sub2 deal.
You would be better off refinancing and cashing out, if you can qualify. [ Edited by jmBROKEr on Date 10/04/2003 ]
Thanks for the quick response.
Benny
[addsig]